Kotak Mahindra Becomes 1st Bank To Cut Salaries Due To Coronavirus; Upto 10% Cut Announced
Ever since lockdown started in India for stopping the spread of coronavirus, banks have been asked to be opened, and bank employees asked to wear masks and continue providing services.
We all had assumed that since bank employees are serving the nation, and are working almost like essential service providers, their salaries wont be deducted, unlike the IT employees and manufacturing.
But we were wrong.
Kotak Mahindra has just become the 1st bank to announce salary reductions, and if we are not wrong, this strategy can spread to other banks as well.
We hope we are wrong.
Kotak Mahindra: 10% Salary Cut
Not all employees will be impacted due to the salary cuts announced by Kotak Mahindra Bank: 10% of the salary will be no slashed for only those employees who are receiving more than Rs 25 lakh as annual salary.
The top management has already announced that they will take 15% less salary, and the bank’s Chief Executive: Uday Kotak is just taking a token salary.
Kotak’s group chief Human Resources officer Sukhjit S Pasricha said, “What seemed like a 2-3 months phenomenon in the beginning, has turned out to be a pandemic with serious implications on both lives and livelihood. More importantly, it is increasingly clear that the pandemic is not going away anytime soon,”
It has been emphasized that there will be no salary cuts for employees earning less than Rs 25 lakh/year.
Kotak Mahindra Group Donates Generously For Fighting Coronavirus
The group has contributed generously to PM Cares fund and other disaster management funds to fight the coronavirus.
On 29th of March, Kotak Mahindra bank donated Rs 25 crore towards Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM Cares) fund.
Meanwhile bank’s chief executive Uday Kotak has donated a separate Rs 25 crore to the same fund, on a personal capacity.
We will keep you updated, as we receive more updates.